Ginger quits her job as personal secretary to the Vice President of HR Technologies because she cannot handle the stress. It takes her three weeks to find a job as a receptionist at Mariam Hotels and Resorts. Over these three weeks, she would be considered frictionally unemployed

A $1 increase in autonomous spending has a multiplier effect greater than one on total expenditures and output because

A) each expenditure is respent in the same amount continuously. B) overtime expenditures tend to increase. C) total expenditures include autonomous expenditures. D) each time an expenditure occurs the recipient respends a proportion of the funds.

Which of the following statements would Milton Friedman disagree with?

A) Monetary policy has few short-run effects on the real economy. B) In the long run, changes in the money supply primarily affect the price level. C) In practice, there is little scope for using monetary policy actively to smooth out business cycles. D) The Federal Reserve cannot be relied on to effectively smooth out business cycles.